Post 5 and 6 of 18 -- 18 Months - 18 Posts Road to a Million
by, 10-31-2011 at 04:09 PM (2405 Views)
Post 5 and 6 of 18 posts – Road to a Million
I missed the Oct 1 post as I was in the middle of the North Atlantic on a cruise going to Canada. Had a great time and did not get back until the Middle of October. So I decided to skip it and combine two months of updates.
Before I get into my theme of the Month “The Good, The Bad, and The Ugly” I wanted to say my projections for where the stock would be have gone completely south. Not only have I missed the boat on where we would be but for the past few weeks the stock has been going in the wrong direction. September we were running around .17 cents a share while October we were running around .15 a share and today on the last day of October we are sitting at .112 a share. Not quite what I had in my tourist brochure when I decided to take this trip. (all this with trials moving forward)
Do I still believe we will get to the 13 dollars a share by December of 2012, well the answer is yes.
September saw some great stuff.
ACTC Secured the Patent for Generating Hemangioblast Cells . This will at some point bring universal blood to the table.
The first Trials have now been approved in Europe.
Another very hot happening was the adding of the very famous Dr. Robert Langer to the ACT’s Board of Directors. He is a world-renowned scientist and entrepreneur with more than 800 issued and pending patents that have been licensed or sublicensed to well over 200 companies in the world. Time Magazine and CNN named Dr. Langer as one of the 100 most import people in America.
A ruling in Europe that prevents the right to patent any embryonic stem cell that comes from a destroyed embryo will favor ACT because they are creating stem cells from their NED (non embryonic destruction) line of cells using their patented process that has been mentioned in previous posts.
Finally, the DSMB Data and Safety Monitoring Board overseeing the Company’s two ongoing stem cell trials in the United States authorized ACT to move forward with the next set of patients. No other news has been released and of course that release is a very key event.
Now my theme of the month is the good, the bad, and the UGLY. I will present a few items that support each of these things going on at the moment. Take time to digest all of this and decide for yourself, do I continue with this investment or is the risk too great. Penny Stock investments are always a risk.
IT is MY HUMBLE OPINION, that the risk is very much worth it.
THE GOOD (a StemD post)
What do we have to look forward to?
1)Global resolution at or less than the amount of shares GR is proposing (will be seen as a positive)
3)Trial update...attachment/improved visual acuity
4)Sale of myoblast program
5)NIH redefinition (ultimate game changer leads to):
a)NED lines approved
6)JV (could be sliced up into multiple regions throughout the world)
7)Additional patent approvals here and abroad
8)IND for hemangioblast
9)IND for MMD
10)IND for corneal transplant
11)Entering China, or India
You won't know when it's coming. You will wake up and it's announced before you can react, and all those that have been waiting or trying to time it to save a few pennies on the downside will be chasing it, or left out. We were doing 100,000,000 shares traded when we announced the AMD approval.
Share price continuing to move in a downward trend (explained in the Ugly)
No joint venture announcements.
A number of lawsuits have been brought against ACT regarding their PIPE Financing of the past.
PIPE's are the most common form of financing for upstarts and highly speculative
companies. The PIPE financing itself can take on many forms. The "complexity"
of these PIPES came in the form of embedded and hybrid. These all need to be accounted
for in audits in different ways according to GAAP and became a nighmare to report.
Snapshot: When ACT restructured with holders in 2009 to get out of default ACT lowered
the note conversion price and the warrant exercise price to 10 cents. The agreement states
that if ACT were to offer consideration to any other parties LOWER than the 10 cents then ACT must
notify holders immediately and ADJUST their(holders) price downward affording them more shares
when they did convert/exercise. The Gemini settlement, Midsummer settlement and the JMJ
transactions point to ACT not abiding to "notification" or "adjustments" to holders...
let's say you and I are part of this financing and both have finaced ACT
to the tune of $1 million dollars. We both have the same terms and can both
exercise/convert when we want at .10. You convert your dollars into shares
and you have received 10MM shares and sold them into the market at a profit.
Later you find out that I was given a deal at .033 and I was able to receive
30MM shares and sell them into the market. What would you do when you found
out? What would you do when ACT denied to give you additional shares when you asked?
Would you file a lawsuit or forget about the xtra 20MM shares due you?
ACT thought the settlements of shares at a price below .10 would not effect those of the past. This was not the case. As of today one large lawsuit has been completed causing an additional 33 million shares to be awarded to Alpha company. This is what is causing the pps to dip.
There you have it. Some good news (trials moving along with success), some bad (delays, delays), and some ugly (unexpected lawsuits.)
This recent award of shares will push the total shares to close to 2 billion. There are a number of companies with that many shares outstanding and pricing over 30 dollars, and so far my research does not have any of them curing the blind.
Remember – this information is just that information. Please do your own DD and make your decisions on investing based on your research.
Till next month,
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